2 Thousand Crores looted by showing loans against deposits
After the fall of Sheikh Hasina’s government, the leader of the controversial S Alam Group, Mohammad Saiful Alam, and his family members became active in concealing the source of the fixed deposit (FDR/MTDR) money held in various banks.
Within the restrictions of the central bank, they withdrew about fifty crore taka from the private union bank. That money is transferred as a bank to various individuals and institutions with their interests through layering. These moneys were kept as fixed deposits (MTDR) in some branches of Union Bank in the name of Mohammad Saiful Alam, his brother Rashedul Alam, brother-in-law Arshad Mahmud and various relatives. The management authority of the bank has helped to raise this money. Not only this, there have been incidents of excessive lending (investment) against the MTDR of 19 customers concerned with S Alam. Apart from this, the central bank has found irregularities in disbursing huge amounts of benami loans (investments) despite having no MTDR. About 2 thousand crore taka have been stolen from the bank through this. In the recently conducted special inspection report of the central bank, the information of such irregularities has come out.
Layering refers to the process of moving or transferring the invested money to different layers through complex transactions. Bangladesh Bank officials said that layering is one of the three ways in which money laundering takes place. This process is used to conceal or hide the source of money.
According to the inspection report, Mudaraba Term Deposit (MTDR) in Union Bank in the name of the owner of S Alam Group, their family members and relatives of the owners were encashed and all those funds were transferred to various individuals and organizations related to their interests through layering. After such sensational information came out in the inspection report, another department of the central bank gave an opinion in favor of not guaranteeing the loan of 350 crores from interbanks to deal with their liquidity crisis. But ignoring that opinion, a deputy governor allegedly sanctioned a guarantee in favor of the bank.
Bangladesh Bank says that the bank’s absconding MD ABM Mokammel Haque Chowdhury, Head of HR, Head of Investment Risk Management, Head of Investment Administration, Chief Risk Officer, Head of Treasury, Chief Financial Officer, Camlco, concerned branch heads and branches have been arrested for withdrawing depositors’ money. The investment head is directly involved.
MD ABM Mokammel Haque Chowdhury was the direct supporter of these serious irregularities. When the absconding MD ABM Mokammel Haque Chowdhury’s mobile phone was called for a statement, it was found switched off. Other responsible officials of the bank also refused to talk about the matter.
Union Bank is one of the banks owned by the S Alam Group, close to the defunct Awami League government. About 65 percent of the bank’s loans have been taken by this group alone, amounting to about Tk 18,000 crore. These loans are taken through fictitious transactions, against which there is no collateral. Again, no installments have been deposited since the loan was disbursed. Apart from this, 42 percent of the bank’s total loans are in default, according to the bank’s internal documents. However, they told the central bank that defaulted loans are less than 4 percent.
According to the inspection report, Mohammad Saiful Alam, the head of S Alam Group, transferred the money from the account in Muradpur and Bandartila branches of Union Bank to Khatunganj as SND (Short Notice Deposit) on August 11. Later it was transferred as S Alam & Co., Agrabad branch. On the same day Tk 4 crore 20 lakh was transferred to a company named Russell Enterprises at DT Road branch and the remaining Tk 4 crore was made MTDR in favor of Crowe Trading, a customer of Bahaddar Hat branch of the same bank. Only the money was not withdrawn or transferred from the account of Mohammed Saiful Alam, the leader of S Alam Group. Money was also encashed from the accounts of his brother Rashedul Alam and brother-in-law Arshad Mahmud. Later it is deposited as various.
According to the report, Tk 8 crore as MTDR of Rashedul Alam’s Kadmatoli branch was encashed on August 14 and 18 and kept in the name of Azizunnessa and Rashedul Karim Chowdhury in the same branch. Similarly, on August 28, Tk. 4 crore 22 lakh belonging to brother-in-law Arshad Mahmud was encashed in Lichubagan branch of the bank and issued pay orders in different names. Apart from this, from the MTDR account of Ansarul Alam Chowdhury belonging to S Alam, one and a half million taka was cashed from the ‘OR Nizam’ branch on August 20 and it was deposited in the name of Rokeya Begum and Hasna Hena on the same day. Moreover, Golam Sarwar Chowdhury’s MTDR of Tk 3 crore 26 lakh was cashed from Khatunganj branch on August 18 and transferred to S Alam Cold Roll Steel account.
It is known that the institution had an investment status of Tk 60 crore 56 lakh in Gulshan branch of the bank. Withdrawal facility is provided by speedy monetization of MTDR despite the huge amount of outstanding investment due to the customer. At the same time, it allows for later removal through layering.
Analysis of the report shows that the owners of S Alam Group or the relatives of the owners withdrew and transferred this money from Union Bank after August 5. Again, some money was withdrawn after Bangladesh Bank sanctioned it. At the end of August, Bangladesh Bank ordered the closure of all loans and credit facilities in the name of S Alam Group. The inspection team termed bank and branch management facilitating money withdrawals in violation of the guidelines, which is an act in the interest of the depositors and a punishable offence.
Misappropriation of Tk 2,000 crore by showing loans against FDR: The Central Bank has found irregularities in huge amount of excessive benami investment against MTDR of S Alam Group and its related companies. As per bank rules, in case of investment against MTDR, MTDR can invest maximum 80 percent of face value by keeping lien. However, against the MTDR of 79.3 million taka, the investment status of 19 customers is 8.53 crore 25 million taka. Again, despite not having any kind of MTDR, the investment status without approval is Tk 1,175 crore 49 lakhs. As a result, S Alam grabbed 2 thousand 28 crore 74 lakh taka from this sector.
It is known that Mokammel Haque Chowdhury was known to be close to Saiful Alam, the leader of S Alam Group. Recently, when the news of various irregularities against the MD came out, he was discouraged. Deputy Managing Director (DMD) Shafiuddin Ahmed has been given the current charge as MD of the bank. Bangladesh Bank has reorganized the board of directors of this bank, which is in financial crisis due to various irregularities, last August. In this, the bank is exempted. Five independent directors have been appointed in the bank.
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Credit: Dainikamadersomoy
